KPMG – CEO Outlook Report, 2023

The KPMG CEO Outlook Report for 2023 explores the challenges that CEOs face in navigating the current volatile economic environment. CEOs are dealing with a combination of disruptive risks and structural changes that raise the cost of doing business and leave little room for error in strategy development and execution. The report analyzes insights from over 1,300 CEOs, including 400 from the United States, to understand how they are managing this compound volatility. While CEOs express confidence in the long-term growth prospects of the U.S. and global economies, their confidence in the growth prospects of their own companies is more subdued. To navigate this environment, CEOs are investing in long-term growth strategies and remaining agile to capitalize on new opportunities and respond to unforeseen challenges. They are focused on investments in generative AI and ESG (Environmental, Social, and Governance) to drive business growth and are prepared to pursue transformational M&A opportunities. CEOs recognize that generative AI is a promising pathway to growth and are prioritizing investments in this area. They are also maturing their ESG strategies to support decarbonization, M&A, and sustainable finance efforts, as well as to attract and retain top talent. Both generative AI and ESG investments can enhance resilience and agility, which are crucial in today's complex and fragmented global economy. CEOs also acknowledge the importance of talent and culture in this fast-changing business environment. They need to foster an ethical culture that embraces change, innovation, and smart risk-taking, while continuously upskilling their workforce and protecting them from burnout. Clear communication of expectations is vital to building trust and CEOs express a desire for more workers to come back to the office, with rewards for those who do. In order to achieve their long-term growth ambitions, CEOs are taking bold action and embracing equity, purpose, and sustainability, recognizing that the pace of change is relentless.